Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q2 2023 Earnings Presentation
25 slides from Lexinfintech's earnings presentation, Aug 29, 2023
Slide 1: Investor Presentation Second Quarter 2023 Results
Investor Presentation Second Quarter 2023 Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by LexinFintech Holdings Ltd (the “Company”) pursuant to Section 5(d) of the U.S. Securities Act of 1933, as amended (the “Securities Act”) solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell
Slide 3: Company Overview
01 Company Overview
Slide 4: Addressing the Market with Different Focus
Addressing the Market with Different Focus Core business supported by new growth opportunities Credit Facilitation Tech-Empowerment Installment Service Service E-commerce Platform Service 01
Slide 5: Commitment to 2C2B2F
Commitment to 2C2B2F Connecting consumers to business and financial institutions Business and Financial Institutions Consumers • Over 140 funding partners1 • Over 190 million registered users1 • Over 2600 merchant partners2 • Loan balance of Rmb114.1 billion1 1. As of 30 June 2023, or accumulative 2
Slide 6: A Seamless Experience for New-Generation Consumers
A Seamless Experience for New-Generation Consumers Omni-channels and multipronged access for our users Consumer credit Maiya E-commerce 03
Slide 7: Empowering the Digitalization of Financial Institutions
Empowering the Digitalization of Financial Institutions Supporting financial institutions in the buildup of in-house capability and competitiveness Local Fintech deployment upgrade Channel co-building Digital infrastructure Product design Quality assets Risk management Operational efficiency Custome
Slide 8: Priorities Unchanged in Execution
Priorities Unchanged in Execution Staying compliant and competitive • Self-examination following the • Enhanced risk identification and same requirements as the 13 modeling platforms • Dynamic credit approval process Risk Compliance • Constant dialogue with regulators • Effective matching of individ
Slide 9: Optimize Customer Operation Strategy to Deal with External Uncertainty
Optimize Customer Operation Strategy to Deal with 工作不足External Uncertainty 明年计划 Premium Customer Focused • To increase the proportion of premium customers while controlling the access of high-pricing/high-risk customers • To take the initiative to seek the best balance of scale vs. risk • Stable ove
Slide 10: Lexin Accumulated Core Capabilities
Lexin Accumulated Core Capabilities Customer Service and Risk Management A Operation A • Abundant internal data B • High-quality external data • Customer operation by • Model iteration segmentation • AB Testing • Feature and qualification identification • Tailor-made products and services D B Techno
Slide 11: Lexin Smart Business Engine
Lexin Smart Business Engine Credit Application Approving Smart Business Engine Customer Alert Label Transaction Acquisition Summarize Acquisition Promoting Process Auto-Matching & Connecting Simulate IDSS Big Data Verify Insight Post Lending Collection & Quality Controlling 08
Slide 12: Lexin Eco-System
Lexin Eco-System Acquired high-quality customers through multi-scenarios Enlarged funding pool and consumption scenarios Increased scale and Lexin profitability Eco-System Empowered financial institutions Enriched data, optimized models and merchants & technology capabilities LePartner 09
Slide 13: Financial Update
02 Financial Update
Slide 14: 1Q23 Highlights
1Q23 Highlights Loan originations Total operating Net income created revenue generated 63.9 billion 3.1 billion 355.7 million Up 30.1% YoY Up 26.6% YoY Up 112.4% YoY 10
Slide 15: Key Financials
Key Financials (Rmb000) 2Q22 1Q23 2Q23 QoQ YoY Credit facilitation service income 1,438,223 2,115,808 2,137,718 1.0% 48.6% Tech-empowerment service income 436,194 367,932 391,695 6.5% -10.2% Installment e-commerce platform service income 538,413 499,159 526,399 5.5% -2.2% Total operating revenue 2,4
Slide 16: Steady User Increase in Amount
Steady User Increase in Amount Number of Registered Users (In Millions) Number of Active Users (In Millions) QoQ QoQ +2.6% -1.2% 199 194 189 6.1 184 5.6 5.3 5.0 5.0 178 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 12
Slide 17: Steady Recovery Upwards to New Scale
Steady Recovery Upwards to New Scale Loan Originations (RMB bn) Outstanding Loan Balance (RMB bn) QoQ QoQ +4.9% +6.6% 63.9 114.1 60.9 107.0 99.6 94.6 56.2 56.1 86.6 49.1 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 1. Loan originations represents the total amount of loans originated during each
Slide 18: Stable V-shaped Trend Back to Normality
Stable V-shaped Trend Back to Normality Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ +2.4% 17% Installment e-commerce platform service income 3,050 2,983 3,056 2,690 Tech-empowerment service income 13% 2,413 Cre dit facilitation service income 70% 2Q22 3Q22 4Q22 1Q23 2Q23 1. Breakdown
Slide 19: Optimized Allocation of Resources
Optimized Allocation of Resources Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ +0.7% 14% 745 Sales & Marketing 18% Research & Development 669 671 667 68% 656 General & Administrative 2Q22 3Q22 4Q22 1Q23 2Q23 1. Breakdown of operating expenses for 2Q23 15
Slide 20: Profitability Grows as Turnaround Recovery Progresses
Profitability Grows as Turnaround Recovery Progresses Net Profit (RMBm) Net Margin QoQ QoQ +8.6% +60bps 356 327 301 11.6% 276 11.0% 10.2% 9.9% 167 6.9% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 16
Slide 21: Short-Term Impact by External Fluctuation
Short-Term Impact by External Fluctuation 30+ Delinquency Ratio 90+ Delinquency Ratio QoQ QoQ +4bps +6bps 2.63% 2.66% 2.59% 2.53% 2.53% 4.85% 4.61% 4.62% 4.57% 4.61% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 17
Slide 22: Appendix
03 Appendix
Slide 23: P&L Statement
P&L Statement For the Three Months Ended June 30, (In thousands, except for share and per share data) 2022 2023 RMB RMB US$ Operating revenue: Credit facilitation service income 1,438,223 2,137,718 294,427 Loan facilitation and servicing fees-credit oriented 667,446 945,919 130,045 Guarantee income
Slide 24: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) December 31, 2022 June 30, 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,494,150 2,627,677 362,373 Restricted cash 1,267,512 1,682,124 231,976 Restricted term deposit and short-term investments 1,331,858 1,019,454 140,589 Short-term financi
Slide 25: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) December 31, 2022 June 30, 2023 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 25,970 39,766 5,484 Amounts due to related parties 4,669 4,022 555 Short-term borrowings 1,168,046 1,094,572 150,948 Short-term funding debts 4,385,253 3,260,609 449,65
LexinFintech Holdings — Q2 2023 Earnings Presentation on 6ix